Which Bank is Good for Personal Loans in India? Compare Top Lenders
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Unexpected expenses or planned investments often require quick funds. That makes personal loans a practical finance solution. In India, there are several banks and other financing firms offering outstanding personal loan plans. But let’s focus on the banks for now.
Which bank is good for personal loans in India? Should you prioritize low interest rates, fast approvals, or minimal paperwork? Some of the top banks offering personal loans are SBI, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank, and so many more.
Through this blog, I’ll explain the interest rates for personal loans and how you can choose the best plan. Let’s begin.
What is a Good Personal Loan?
A good personal loan meets three key criteria: affordability, flexibility, and transparency. It should offer a competitive interest rate that doesn’t strain your finances. And the repayment terms should be reasonable and align with your income with no hidden charges.
The best loans come from reputable banks or NBFCs with quick approvals, minimal paperwork, and responsive customer service. Factors like processing fees, prepayment penalties, and loan tenure also play a crucial role.
Ultimately, a good personal loan fits your financial situation without adding unnecessary stress. That’s what we at Nihal Fintech aim when we help you find the best personal loan options.
Which Bank is Good for Personal Loans in India?
When choosing a bank for personal loans, you need to look at the interest rate, loan amount, tenure, and processing fees. Let’s look at the top banks and their offerings.
SBI
SBI offers competitive interest rates, making it ideal for cost-conscious borrowers. It’s a great choice for salaried individuals and pensioners. SBI also provides pre-approved offers for existing customers.
| Max Loan Amount | Up to Rs.35L |
| Tenure | Up to 7 Years |
| Interest Rates | 10.30%-15.30% p.a. |
| Processing Fee | Up to 1.5% (Min. Rs.1000/- and Max. Rs.15000/-) |
HDFC Bank
HDFC Bank is known for fast approval and same-day disbursement, especially for pre-approved customers. Their online application process is seamless, making it a top pick for urgent needs.
| Max Loan Amount | Up to Rs.40L |
| Tenure | Up to 6 Years |
| Interest Rates | 10.9%-24% p.a. |
| Processing Fee | Up to Rs.6500/- |
ICICI Bank
ICICI Bank offers instant personal loans (sometimes within 10 seconds) to pre-qualified customers. Their minimal documentation and digital process make borrowing hassle-free.
| Max Loan Amount | Up to Rs.50L |
| Tenure | Up to 6 Years |
| Interest Rates | 10.85%-16.65% p.a. |
| Processing Fee | Up to 2% |
Axis Bank
Axis Bank offers customized repayment plans and quick processing, making them a solid choice for high-value funding needs.
| Max Loan Amount | Up to Rs.40L |
| Tenure | Up to 5 Years |
| Interest Rates | 11.25%-22% p.a. |
| Processing Fee | Up to 2% |
Kotak Mahindra Bank
Kotak Mahindra Bank allows tenures up to 6 years, one of the longest in the market. And they offer instant approvals for eligible applicants. Their customer-friendly policies make repayment easier.
| Max Loan Amount | Up to Rs.35L |
| Tenure | Up to 6 Years |
| Interest Rates | 10.99%-16.9% p.a. |
| Processing Fee | Up to 5% |
IndusInd Bank
IndusInd Bank charges low processing fees and offers competitive interest rates. They also provide pre-approved loans for existing customers, ensuring quick access to funds.
| Max Loan Amount | Up to Rs.50L |
| Tenure | Up to 7 Years |
| Interest Rates | 10.49%-26% p.a. |
| Processing Fee | Up to 4% |
IDFC First Bank
IDFC First Bank is known for no hidden charges and competitive rates. They offer instant approvals and flexible tenures, making them a reliable option for borrowers seeking clarity.
| Max Loan Amount | Up to Rs.10L |
| Tenure | Up to 5 Years |
| Interest Rates | 10.99%-23.99% p.a. |
| Processing Fee | Up to 2% |
Yes Bank
Yes Bank provides attractive personal loan balance transfer options with top-up loan facilities. Plus, they ensure quick processing, making it ideal for refinancing existing debt.
| Max Loan Amount | Up to Rs.40L |
| Tenure | Up to 5 Years |
| Interest Rates | 11.25%-21% p.a. |
| Processing Fee | Up to 2.5% |
Federal Bank
Federal Bank is more lenient with credit scores, offering loans even to those with moderate CIBIL ratings. And they provide quick disbursals with minimal paperwork.
| Max Loan Amount | Up to Rs.5L |
| Tenure | Up to 4 Years |
| Interest Rates | 12%-22.5% p.a. |
| Processing Fee | 1.5%-2.5% |
RBL Bank
RBL Bank is a good option for smaller loan amounts. Their fast processing and easy eligibility make them suitable for immediate, short-term needs.
| Max Loan Amount | Up to Rs.5L |
| Tenure | Up to 3 Years |
| Interest Rates | 18%-26% p.a. |
| Processing Fee | Up to 2% |
Tata Capital Limited
Tata Capital offers tailored personal loans with flexible terms. And they provide quick approvals with a smooth digital application process.
| Max Loan Amount | Up to Rs.50L |
| Tenure | Up to 7 Years |
| Interest Rates | 11.99%-35% p.a. |
| Processing Fee | Up to 4% |
The best bank for a personal loan depends on your credit score, income, loan amount, and urgency. Compare interest rates, processing fees, and repayment terms before applying. And you can get Nihal Fintech’s financing services to avail the best funding for your personal and business expenses.
Personal Loan Interest Rates By Top Banks in India
When comparing personal loans, interest rates play a crucial role in determining affordability. Let’s compare the interest rates from different banks.
| Bank | Interest Rate (p.a.) |
|---|---|
| SBI | 10.30%-15.30% |
| HDFC Bank | 10.9%-24% |
| ICICI Bank | 10.85%-16.65% |
| Axis Bank | 11.25%-22% |
| Kotak Mahindra Bank | 10.99%-16.9% |
| IndusInd Bank | 10.49%-26% |
| IDFC First Bank | 10.99%-23.99% |
| Yes Bank | 11.25%-21% |
| Federal Bank | 12%-22.5% |
| RBL Bank | 18%-26% |
| Tata Capital Limited | 11.99%-35% |
Always try to negotiate with your bank on the interest rates—there’s a chance for loyal customers to get better rates.
FAQs
Can I prepay my personal loan without penalties?
Some banks like SBI and IDFC First Bank allow prepayment after 6–12 months with minimal charges. Always confirm prepayment terms beforehand.
Do banks offer pre-approved personal loans?
Yes, HDFC, ICICI, and Axis Bank frequently extend pre-approved offers to existing customers (check via net banking/app).
Can I get a personal loan with a low CIBIL score?
Yes, Federal Bank, RBL Bank, and some NBFCs are more lenient with credit scores (even approving loans for CIBIL scores as low as 650), though interest rates may be higher.
Can self-employed individuals get personal loans easily?
Yes, but eligibility criteria are stricter. Banks like HDFC, ICICI, and Axis offer loans to self-employed applicants with 2+ years in business, ITR for the last 2 years, and regular bank transactions.
Let’s Conclude
Selecting the best bank for a personal loan in India depends on your unique financial needs. Do you want low interest rates, quick disbursal, flexible repayment, or higher loan amounts? Based on these requirements, there are different banks that are considered “perfect”.
For example, SBI, IndusInd, and IDFC First Bank stand out for competitive rates. HDFC and ICICI Bank stand out for their speed and convenience. And Kotak Mahindra Bank is a strong option for longer tenures. Before applying, compare interest rates, processing fees, and eligibility criteria across lenders.
Assess carefully, borrow wisely, and ensure timely repayments. And for more help with personal loans, consult with Nihal Fintech today!
